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Discuss what satisfying assumption 1-3 for regression inferences by the variables under consideration would mean. An article examined the relationship between investments in mutal fund portfolios and their associated tax efficiencies. The following table shows percentage of investments in energy securities (x) and tax efficiency (y) for 10 mutal fund portfolios.

X=3.1, 3.2, 3.7, 4.3, 4.0, 5.5, 6.7, 7.4, 7.4, 10.6.

Y=98.1, 94.7, 92.0, 89.8, 87.5, 85.0, 82.0, 77.8, 72.1, 53.5.

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Statistics and Probability, Statistics

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